The long and winding road to the gas pipeline: gas line projects provide engineering, environmental contractors with work.

• Author: Liles, Patricia
• Position: OIL & GAS

Alaska's contracting community involved with engineering, design and environmental studies should have plenty of work opportunities this year, thanks to continued advancement of two competing natural gas pipeline projects.

Both TransCanada, the Calgary-based pipeline company that in 2008 secured official State approval and financial support to develop an Alaska gas pipeline project, and Denali--The Alaska Gas Pipeline coalition, made up of North Slope producers BP Exploration (Alaska) and ConocoPhillips, plan extensive work programs for 2009.

Combined, the two groups will likely spend in the neighborhood of $200 million in 2009 for studies designed to advance their respective natural gas transportation projects that would commercialize vast supplies of the energy resource located on Alaska's North Slope.

Based on years of development of the North Slope oil fields, State officials and producers currently estimate a resource of 35 trillion cubic feet of natural gas available for development, with the potential for much more.

The two competing entities are both working to assemble estimated construction and operating costs for a pipeline project that would transport North Slope natural gas to commercial markets Outside. Cost estimates are needed for a pipeline operator to conduct an open season, which is the process of securing long-term gas shipping commitments from producers.

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SPREADING THE MONEY AROUND

Both TransCanada Alaska and Denali--The Alaska Gas Pipeline LLC, are working toward holding an open season for their respective projects in 2010. And both entities will be using much of 2009 to prepare for that milestone, by completing support work on engineering and design, environmental baseline studies and commercial discussions.

"We expect to triple our spending (in 2009) from 2008, and we spent about $55 million in 2008," said Bud Fackrell, president of Denali, in a telephone interview Jan. 24.

Unlike last year's field season that focused on the 200-mile-long possible gas pipeline route from Delta Junction east to the Canadian border, this year Denali contractors and employees will spend time gathering data in Canada. How much of an effort and presence the Denali crews will make depends on land access, Fackrell said.

"We have some pretty aggressive plans, although it's too early to tell the size," he said.

"We design the program, then we get access to the land. We have not done field work in Canada yet, so it may be...